Skip to main content

tv   Varney Company  FOX Business  October 30, 2017 9:00am-12:00pm EDT

9:00 am
dagen. dagen: the savings rate we found out today fell to a 10 year low at a time when the gop announced his thinking about messing with people's money vehicle for retirement, 401(k). i don't care how you spell it, don't touch it. you'll read today. thanks for joining us. "varney & company" now. >> on charles payne. stuart will be back tomorrow. a big, big week for politics. we'll start with this bombshell. paul manafort, president comes from her campaign chairman was told to surrender to federal authorities. one of manafort's business associates also told to surrender. they will be the force to russia's meddling. judge andrew napolitano will join a shortly on this. reaction to the news, we do also have a lot and of course the details on wednesday in the president expect they also this
9:01 am
week for the fed chair. looking like a lower open for right now, but fight upward movement in record territory. months and months for the stock market. by the way, speaking a record territory. big-name tech stocks holding off to massive gains for friday. amazon come alphabet, microsoft new highs and half-hour from now the market will open. we will have three hours for your sabbatical. "varney & company" will start right now. ♪ charles: back to the breaking news. paul manafort, judge napolitano witness. a scuttlebutt over the weekend but it still a shocking bit of news. >> "the new york times" is reporting one of the account said the indictment is for tax fraud. tax fraud is not failure to pay your taxes and tax fraud is
9:02 am
lying to the government about what you owe. that may or may not be related to his activities in russia. i suspect it is because his codefendant, rick gates didn't work with them on the campaign, but worked in its business when he was an american agent and an american lobbyist from time to time in ukraine and entities in russia. i don't know that it was the russian government itself but owned or controlled by the russian government. here's the question. does the activity alleged in the indictment consists of event that occurred before he began running the campaign? charles: the timeline begins in 2012. among this involves wires crisscrossing of liars, and i mean, if this is all about evading taxes, long before he became a campaign man >> the answer may be nothing or
9:03 am
the answer may be the government suspects that he knows something and they want to come us already use this word but it's the parlay of the line for snack line for snack time and they like to squeeze in. they want to threaten them with massive amounts of termination and jail time, loss of property loss of liberty unless he coughs up what he may have about normal term. he may have nothing. this is the danger of federal prosecutors operating this way and what bob mueller is doing the paul manafort, every prosecutor does in every federal district all the time. you are after a big cheese coming in by somebody below that person on the totem pole and see what they can cough up to help you get the big cheese. sometimes to tell you the truth they tell you what you think you want to hear an order they will go easier on them. we don't know what it is they hope to get from manafort. let's say they get nothing from him either because he hasn't anything to get them or because he won't get it. he still has to defend this indictment. it will be off the front pages
9:04 am
but he'll still be prosecuted and we will enter into a plea agreement for the jury. charles: the mainstream media keep it on the front pages even though it doesn't look like it has a direct correlation in. >> this is also an ominous. with the next domino? we can speculate as to who else is in their crosshairs did we know they saw a lot of documents from general flynn. we know there's not a lot of documents from the christian or companies. we don't know where the government will go. charles: let's say the next person, whoever that is, may come up with charges. do they then began to play them off each other, hey, manafort, we've got another person who's ready to flip, as part of the lease greenspan? >> that's a great question and the answer is yes and no. if they defend themselves separately, the answer is the
9:05 am
government will try and play them against each other. if they enter into a defense agreement whereby all the defendants agreed to pool their resources and folder information and present one united front not to testify against the other the government has hit a brick wall. we won't know the answer. we'll know it but we won't know the answer right away. charles: judge, please stay right there. we want to get to the folks money. a check of the dow futures before we start this week. we will give back those gains this week. the focus on big tax. these companies i'm in absolute terror. amazon on friday, but so did google, microsoft, facebook and all-time highs. joining us now, peter marie c., economists and business professor at university of maryland. i guess you've got to go back to the tech bubble. we haven't seen anything quite like this in then. >> the price earnings ratios are not what they were in theays.
9:06 am
we areot sn these prosterous presterous situations wreompanies are doing is that did not earnings. these price earnings ratios don't concern me in one sense because they are no higher than they were a year ago and no higher than the 20 year average. they do concern me that they are so uneven. tech companies are doing better than procter & gamble or general electric. there are a lot of high capitalization american companies that have breaking business models and it isn't clear that they're not going to end up like sears before it's over release like hewlett-packard. charles: the market is being efficient, taking market share in and go into new industries and cautious on those that are questionable. >> absolutely. you have to ask, can someone like apple, 100% of the cell phone penetration in the united states is 100%. in europe it's 90%. worldwide is at much lower.
9:07 am
the value of the cell phone themselves, can they keep going the way they have. that's the question. delivering in that regard, another american companies deliver for example, those are very important things because that's where the growth is in america. charles: i've got another one, peter piercy and some compromise on the tax reform coming down to the wire. congressman kevin brady says he's going to restore production for property taxes. is that enough to get a pass and if so, how do they still find the trillion or so dollars they would like to make up for the deficit? >> well, there's two things they can do. less with regard to the estate tax, not do anything at all. the other thing is they don't lower rates as much and maybe reinstitute a very high rate for the very well-off. after all, they are the ones who take the property tax reduction most frequently. a couple of ways around this but
9:08 am
the important thing to remember is $150 billion a year. 75 million off of investment taxes. a 20% cut in the profits tax. that will create some growth. no matter how they slice or dice or pair or purée this thing if you put $150 billion back in the economy, have two consumers can have to business, you'll get growth will be good for the market. pair that with powell going to the fed and you can have another bull run right on top of the one we've had. charles: it sounds great. we see so much gop over this, a budget that barely passed. there's got to be a safer towel has to be sacrificed or several of them have to be altered. >> absolutely. charles: hold on one second. updating breaking news. officially indicted. what are the charges? ashley: there's a huge laundry list, but 12 counts in this indictment.
9:09 am
conspiracy against the united states. conspiracy to launder money. unregistered agent of a principal, false statements and seven counts of failure to file reports the foreign bank and financial account then that's against paul manafort and richard gates his former business associate. >> it seems these events occurred significantly before the campaign of donald trump. so far someone unfamiliar with the procedures that what is this have to do with investigating trump and russia. it has to do with the fact special prosecutor is very broad and he wants to get somebody that he can squeeze. he's a very serious charges against manafort. the connection to russia is his principal client and all of this was the former president of the ukraine was an ally of putin and the act according to the indictment of representing this guy he received money from russian interest as well and did
9:10 am
not report himself or register as a foreign agent. he didn't report accurately the money he received in their for pay less than he should have. >> what about the notion somehow he took the job as campaign manager ticket information for russia in terms of paying them back are living up to an obligation he may have had. >> i have another chance to read every word but that is implicit in here. the president's enemies will rejoice at this because they will say that his next comment that charges -- transfer no federal crime matches collusion so the democrats talk about it, just a laundry list of white-collar crimes that can amount to that. >> pollution is a television or hollywood or media turn. i think i collusion, they mean an american person breaking in american law to help russia learn about our system or gather information, my khaki.
9:11 am
ashley: more than $75 million below their offshore accounts they claim. more than 18 million which is used by him to buy goods, property and services in the united states. in time to conceal from the federal revenue service. charles: big, big news by the way. update a story we brought you earlier this month in general electric. they did no former ceo jeff immelt had a second jet that follows him around when he flew. he also said he had no allowance of that second jet either. [laughter] charles: that country's top prosecutor failing charges and accusing them of rebellions do this in breaching the constitution. full details coming up. a warning for secretary of defense matters. he says the threat of nuclear talks with north korea is
9:12 am
accelerating. general jack keane is on now. he is the next right after this.
9:13 am
9:14 am
9:15 am
charles: a visit to north korea over the weekend. defense secretary james mattis says north korea nuclear attack is accelerating. jenin is not general jack king, former vice chair of staff to the u.s. army in military analyst. you agree with the assessment. >> i don't know the facts as he does because director pompeo said a week ago that this north korean threat indeed with getting much closer. secretary matt escape those briefings on a regular basis. let's just take them at face value. i think what they are trying to tell us is that what kim jong un has done all along, he is trying to accelerate the miniaturization of nuclear weapons that you put him on an intercontinental ballistic missile that could reach the
9:16 am
united states and get that done before the sanctions really start collapsing the regime. he believes in his mind, charles, once he has that capability as opposed to hacking then. because we expected nuclear bombs going back to 2005 when his father had developed the capability. that's his capability. charles: if you look at all the collapse. the overtures >> i agree with that conclusion. when president obama was the president for national security
9:17 am
team with the military option back on the table and it is credible and therefore i think kim jong un will recalculate china. that is the visit that is so important is taking place next week with the president coming to south korea, japan, certainly other countries, but also most significantly china and given the new powers that the president xi has in china. i think given that strong foundation he has. two d. nuclear eyes.
9:18 am
we are going to see. >> while the world takes them seriously in north korea, we have an apposite all. with respect to advancements in abilities to give missiles further than the large nuclear explosion they pulled off recently. if we keep being propelled towards this place, you know, what do south korea do? they may want to start are in to start on themselves of to start arm themselves with nuclear weapons and even though japan with world war ii still in their mind, even though they may say was that north and south korea with nukes, count us in also. >> that's a very good point and that is why there's a significant amount of leverage your against china.
9:19 am
using a chemical weapons on its own people certainly indicated to president xi there's a different president during the united states than what we've been dealing with in the past. you bring these things together, credible military option on the table by trauma. we don't want a nuclear as south korea and japan, therefore he will likely come in my judgment can take some action dealing with north korea. charles: general keane, thank you very much. appreciate it. paul manafort, one of his associates officially indicted judge napolitano back for more right after this.
9:20 am
9:21 am
my "business" was going nowhere... so i built this kickin' new website with godaddy. building a website in under an hour is easy! 68% of people... ...who have built their website using gocentral, did it in... ...under an hour, and you can too. type in your business or idea. pick your favourite design. personalize it with beautiful images.'re done! and now business is booming. harriet, it's a double stitch not a cross stitch! build a better website - in under an hour.
9:22 am
free to try. no credit card required. gocentral from godaddy. whentertaining us,es getting us back on track,hing? and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to
9:23 am
charles: back to the news of the day. paul manafort officially indicted on charges including money laundering and tax fraud. judge, you've been reading through the indicted. what are some things that stand out? >> the government has done a very thorough job in obtaining financial information about mr. manafort, which he did not voluntarily file with banking authorities and they demonstrated the existence of literally hundreds of offshore corporations which were used as conduits to receive multimillion dollar payments from foreign
9:24 am
entities, which then paid bills on behalf of paul manafort, the government version now and his family members on which no taxes were paid. charles: by what they pay him such large amounts of money? what did they bring to the table in the first place? >> is principal client is the former president of the ukrainian who was properly elected after a campaign managed by paul manafort and his people. he then stayed on as an advisor and was paid many, many millions more as an advisor. >> a lot of that money was paid forward for things to be done in the futur >> i think the gernment wil probably argue in its implicit in the indicent that paul manafort and his colleague were agents of a foreign government
9:25 am
and that paul manafort, according to the indictment was an agent of a foreign government while he was managing donald trump's campaign during the latter part of the republican primaries and at the convention in cleveland. according to the indictment, the alleged illegal illegal illegal activities of pulp manafort continue until september 2016 at which time he was no longer running the campaign. dream to judge, a lot of work to go through. we appreciate so far. thank you very much. the market up in a less than five minutes. huge week last week led by the big tech names. a couple report their earnings later on. the big jobs report. this has been an fast enough, boys and girls. we'll be right back. today, the new new york
9:26 am
is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state, we're building the new new york. to grow your business with us in new york state, visit
9:27 am
9:28 am
the and he
9:29 am
charles: the opening battle we do have some big economic data this morning. income and spending really big numbers. and come up for 10% cent. spending up 1%, well above what wall street was looking for. the most money spent on autos and september 2009. replacement for the hurricanes.
9:30 am
some of it can also be long-running consumer appetites growing because they seen a lot of evidence of that last week in particular. this market we will open down no doubt about it. we've been buying don't think it will be a down day. the opening bell populating the bell. winners or losers popping up. more losers than winners right now. nothing significant. of course we'll continue to check the big word for you. the s&p 500 down yours lately a fraction of 1%. the nasdaq at unstoppable juggernaut world of tech names reside in you can see it down a little bit this morning. the takeover news this morning. homebuilder lenore will buy a small rival into worth sampling $3 billion will create the largest homebuilder in the united states. to check on the big tech names
9:31 am
referenced and amazon, google, microsoft, facebook 10 all-time highs. looking good this morning. ashley webster, elizabeth mcdonald, keith fitzgerald, todd horowitz. we've got to talk about them. can anything stop them at this point? >> you know, it's short of some sort of geopolitical event, no i don't hang so because they're all about the future. they've got the numbers, consistently i think is really where you want to be. >> the nasdaq 100 in just one day out of $200 in market value, just on friday. that's a big deal. keep is absolutely right when you look at caterpillar, and the forecast got listed, an increase to 625. caterpillar is about global growth. this is about the future. charles: i let caterpillar's numbers last week. they hire 2000 people in america, 3300 outside of america. north america numbers through
9:32 am
the roof. it is really amazing. we are firing on all cylinders. ashley: so is china pacific region, coming back stronger. at 21-25% year-over-year for demand from china. that's only the global economy adding to the carowinds. charles: what is going on? >> good morning, charles. listen. we are going up but i'm not going to fight it. in the short term i'm trying to short this market. long-term i'm always long. we have problems talking about the amount of debt we have. critical level continues to grow. in general at some point we have to answer obvious that will be paid back. we cannot continue to live on that cheap free money we are getting. that's the problem will come to fruition in a later date. >> in the meantime, paul
9:33 am
manafort surrendering to authorities. the question is that will the growth agenda? >> i'm watching that very very carefully, charles. so far it's not been anything more than a distraction. as long as it stays that way, i don't think traders will give it a second thought. however, if this blends into something unthinkable, we've got a problem. >> there will be a perry mason graham trial. 90% of these cases go to plea bargain. the judge was right, who could squeeze in what further charges are brought in the trump empire against individuals. >> the judges here, judge napolitano does bring them into president trump. >> democrats already going to put this right into the camp of the donald trump campaign and even after the election they will do it to associate paul manafort at donald trump. ashley: case was also charged
9:34 am
out of a super pac this year. >> todd again, according to the indictment, and set up domestic accounting companies, foreign accounts and companies. we are talking the timeline that goes back to 22,006. maybe their association of president trump long after this couldn't have been somebody thought all of this dustup a long time ago. headlines are going to say one ring mainstream media will say one thing. will the market be influenced by this? >> the market will continue on its current portion. the next big step will be to unveil the tax plan on wednesday and whether or not they want to cut these 401(k)s. that will be the key issue and whether or not it will pass. that the real thing byron something totally did. it has nothing to do and will not hurt the market wanted it
9:35 am
all. >> speaking of the tax plan, the national association of home builders not happy with what they see so far. they will pose the republican tax plan. this is the first major entity will push back against republicans. how big of a blow is this? >> in the scheme of things, charles, probably not that big. this is all about special interests right now and you will see they will plead their case. we have to take a look at the bigger picture, which is that the president going to do on both sides of the aisle. how it's going to impact the average american. >> the bottom line is because the reconciliation, the neutrality aspect of this, they've got to come up with some sort of scheme to make up for the trillion, chilling and a half dollars are preferred to
9:36 am
all sorts of cockamamie at the border adjustment tax. by the way, a lot of viewers think they should get rid of state and local deductions because of unfair subsidies. where does that money come from and how did they give the plan by when they? >> i don't know. this is a lot like taking blood out of your left arm and putting it in your right arm. again, get back to the basics. how does the average american come through this. those folks are still not recovered from the financial crisis. until congress gets with the program. >> the whole thing about the deficit. when reagan cut taxes, revenues did come pouring in, deficits to grow at the same time. nancy pelosi saying this is an assault on the middle class. by the way, joe biden, john kerry and al gore come and they all voted for the reagan tax
9:37 am
cut. he's doubling the number of people with zero tax brackets. >> so tired they got nothing else. i don't even think. >> the first sign of the first page of a very old playbook. >> the retail ice age, retail brick-and-mortar ice age. cutting its price targets for two of the big names out there, macy's and jcpenney's particularly for jcpenney. >> we don't have any to go out. family outings, they don't have enough capital where they want to spend extra for gas and pay a little bit more. now everybody can go to amazon, get it delivered to your house for free.
9:38 am
you don't have to do anything. that's the bigger problem. amazon has changed the way we shop and now wal-mart was the original changer and we don't shop the same way anymore. now it's about the dollars and cents, not the actual mall. charles: keith, to that point, people are going up, mature living in the moment. they've now, if you want to buy something, and i think those folks realize that amazon and netflix part of the s&p consumer discretionary sector, not the tech sector is just how we shop is really what's changing. >> i think that's a very important point. i'll give an example yesterday. what do equipped to kayak with identical safety packages. i walked into a bricks and mortar retailer. i found one of various items. the person at the checkout counter said did you find everything you wanted and i have to say no one going to order it
9:39 am
online. the retailers to accept any more. >> one of check on a big word. we were down as much as by an almost all of the tapes. of the oil. the expectations that opec led production cuts are going to be extended or in the i'm sure dealing reported higher profits. it secured more contracts for its deepwater drilling rigs. those are more expensive to operate so that's a great sign. second season of the hate netflix show stranger things debuted on friday making a big move into merchandising on this. the company working licensing deals for action figures, board games, all things related to stranger things and of course other shows as well. a new report claims that ge's board was kept in the dark about
9:40 am
ceo jeff immelt jet that followed him around. obviously they're in trouble. a new ceo trying to cut everything back. this is another major setback for the company that spent the last decade falling apart. >> they've totally fallen behind. they became like ibm and the other companies that couldn't keep out. the ceo has enough stones to take another airplane and the board not knowing about it. as it. i find all that hard to believe and hard to fathom this is all possible. no wonder there is a second plane falling the sky around. ashley: what did he think it was a fan following him around? it was registered under robert jeffreys or jeffrey roberts. his full name is jeffrey robert immelt. that's what it was registered under. charles: nasdaq just had an
9:41 am
all-time high. doesn't stop. thank you is very much. let's take another quick. significantly up the lows. only been open for 10 minutes and we are buying on the day. meanwhile, amazon expected to sell a ton of alexa smart speakers this year. we're talking tens of millions of units. we are going to give you the big number next. republican from new york, not a fan of president trump plan. i'm not sure but president trump's plan, the state and local deductions. he is here to answer some of these questions on how congressman brady will be all to ultimately put together a plan that all republicans can agree on. he is up next. we are going to talk to him right after this. (honking) (beeping) we're on to you, diabetes.
9:42 am
time's up, insufficient prenatal care. and administrative paperwork, your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you too. at optum, we're partnering across the health system to tackle its biggest challenges.
9:43 am
9:44 am
tune into the dow up 35 points. not a bad start for a monday after another rock 'n roll week. amazon the story of the day. the company expected to sell 22 million echo smart speakers this year. a lot more than they did last year. lori rothman joins me now. what is going on? >> double the number of amazon echoes from last year. these are jaw-dropping, pleasing to the team that amazon continues to take over the world of retail and smartphone. these devices are going to reach 244 million by 2022. not just amazon .co, the smart home devices across the board. 24 million were sold last year and 2016. of those, amazon, the apco will account for 60% this year, but up to 60% of the market share by
9:45 am
2022. if that's not fast enough, some of the concerns holding back the growth of the smart home devices high monthly service cost still and also concerns about privacy. charles: that's probably why won't get one. it won't matter. my wife will have five of them. the dnc reacting to news of paul manafort's indictment. >> as we suspected, let me read it to you. the chairman of donald trump's campaign and its deputy have been charged with conspiracy against the united states, money laundering and making false statements on related to their work to promote a pro-putin regime. he goes on to say they ran trump's campaign and continue to be a part of his inner circle after election day. this underscores the seriousness of the investigation into donald trump's ties to russia. charles: thank you very much greater to congressman lee zeldin. thank you for joining us. your reaction to all the breaking news this morning. >> not a good day for paul
9:46 am
manafort. it's important to know as we read through the indictment, this is an allegation going back a decade and while the democrats may try to tie this to the president, that would be a really unfair inaccurate, partisan "politico" station characterization. >> in other words you'd be surprised. appointments and judge napolitano's reading through it, and a speed reading because it's pretty exhaustive work, but apparently the timeline does begin in 2006 up until 2016. so that will be news grabbed by the mainstream media. the record complained, pro-putin, all of the surrounding president trump. it looks like things that began years and years ago, to your point a decade ago was at the center of this, but can this have an impact on the work you guys are trying to achieve in capitol hill? >> no, not at all.
9:47 am
we are getting tax reform done before the end of this year. we have important priorities every single weekend victories across the finish line. several hundred bills, well over 300 bills across the house this year. that will not stop because of this. the charles: i speak about it is. new york republicans have a big big tree in new york apparently. we don't know because it changes day to day. now those seductions are off the table again for what i understand. is that true? >> i am waiting on confirmation on exactly what the change is going to be. the original proposal was to eliminate state and local tax deduction. we get indication there are major changes made to it, but exactly what is placed on the table. charles: you'd be okay with the compromise, the higher economic threshold for them so the very rich people won't get them but the middle class like new york and new jersey, which are higher income levels parts of this
9:48 am
country. >> first off, my position as the state and local tax deduction should stay. when we start talking about this, it's important to note a few things. my duty to my constituents, while the hard-working low-income middle income constituents to get tax relief just like everyone across the entire country in their districts. charles: we are running out of time but when you talk about everyone around the country, republican voters in other parts of the country say why should your state be subsidized? why should rich new yorkers get a subsidy from the federal government if they don't get it in new york city? >> they are subsidizing the rest of the country, tax policy and spending policy. when you look at both sides of the ledger. it is important to note one of the reason our state and local tax deduction is as tight as it is is because our deductions are as high as they are. tonight that is nothing to do with the guy in mississippi you want to know why you've got progressives who control your
9:49 am
state, red and into the ground. they feel sorry for you. they've got room down there for you. this is ultimately what gets hurt. we've heard 401(k) and that scares the be jesus out of everybody. we don't want that. what would be the compromise? >> i don't know exactly what the ways and means committee will be placing on the table on that. we will look to see what they are proposing. this is a new debate. this is a deduction that's been around a hundred years. this is one of the ways abraham lincoln helped finance the civil war so it's been around a while. we are not being subsidized the state and local tax deduction existing or not existing. we are subsidizing other states. we get less back on a dollar. you know, i agree we need our state and local governments to be more responsible with
9:50 am
spending. the arrest of 60 days or nights ago for 100% 0% is just that policy. we need to give enough of the time to get their fiscal house in order and not the message or build a blog see how in, andrew cuomo in albany. train to congressman, thank you very much. i know it's complicated. we hope you guys get it done on wednesday. appreciate it. let's check on the market. the dow pulling back a little bit. the trading range down 30, down 89. nasdaq earlier hit a new all-time high. this is a holding pattern. meanwhile, cadillac out with a brand-new self driving car. hands-free driving has become a reality in the fox news car guys drove one of these things or maybe it drove him. he will be here to give us his review right after this. e.
9:51 am
it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.
9:52 am
or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to
9:53 am
9:54 am
charles: cadillac jumping into the self driving car game releasing a new self driving automotive gary gasser got a chance to test one of these bad boys out. what did you think? >> this is cadillac's new super crew system. full-size sedan. you know, one of the systems that could steer a car in wayne. a lot of cars can do it, but
9:55 am
this one is so far beyond any of the ones i've driven lately. what general motors has done is they've gone out and 3-d mapped every highway with laser mapping. so the car knows exactly where it is and if it's capable of driving on that road. if it's not it won't even engage the system. if the system is engaged in is a sharp turn coming up, it will give you plenty of leeway and noticed a takeover control before it has to react to the road. charles: the races on. what is the advantage beyond that because that is huge? obviously to have mapped all the highways is also mind-boggling to think of. i understand something that watches your eyes to make sure you're not diverting your attention from the highway. >> the self driving takes you where to go. there is a camera that keeps an eye so you don't have to keep your hands on the steering wheel. facial recognition technology. he turned aside like this come a couple seconds start averting.
9:56 am
i had a hand in front of my face and say are you awake and you see right now. if you don't react to the car, it will stop with the hazards on and call 9-1-1. >> five minutes. >> again, knows where it is. the last few takeover. 10 miles at a time without any problem. >> a lot of folks they don't get it painted, but it's about a decade off. fully autonomous. >> i was talking to a top engineer from another automaker recently. i said look, are already going to have full autonomy. tell the car were to take me. he said no, but will have the limited use situations where you drive on the highway and in the city in the last 100 yards still up to you. as far as the mechanical part of
9:57 am
it, and this is better than most drivers. charles: you're one of the best jobs out there. thank you appreciated. big news of today news of the day as paul manafort, former campaign manager to donald trump indicted. live report from the white house right after this.
9:58 am
. . they're affordable and fast... maybe "too affordable and fast." what if... "people" aren't buying these books online, but "they" are buying them to protect their secrets?!?! hi bill. if that is your real name. it's william actually. hmph! affordable, fast fedex ground.
9:59 am
copdso to breathe better,athe. i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . it contains a type of medicine that increases risk of death in people with asthma. the risk is unknown in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro.
10:00 am
call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro. ask your doctor about anoro. ♪go your own way get your first prescription free at charles: well it is 10:00 a.m. on the east coast. 7:00 a.m. in california. we're walking through all the big news t starts with paul manafort, former campaign chairman for president trump facing federal tax fraud charges. manafort surrendering to federal authorities. this is part of the investigation into russian meddling. later this hour, former trump campaign manager corey lewandoski will join us. also new, another challenge to the gop establishment, danny tarkanian is taking on the republican incumbent heller in nevada. he joins us in a few minutes.
10:01 am
becky gerritt ton gave emotional congress about the irs. is this america? she will join us for a reaction. jam-packed hour two of "varney & company" and it starts right now. ♪ charles: first we start with your money and the big board now off 36 points. off as much as 89 at the start. we're holding up pretty good. now to the big technology names we watch every single day. facebook up, amazon up, microsoft up. alphabet google giving a little bit back. these names are phenomenal on other side of the ledger. jcpenney getting downgrade at citi. ashley: there is the organ.
10:02 am
charles: some people may say is this a signal to buy? i bought it on dish but not this time. jcpenney hitting a seven-year low. check with under armour. that stock getting hit again. new steph curry sneakers, late getting to the stores. a lot of inconsistencies with that. it hasn't done great under armour recently. the big news of the morning, paul manafort. ap capturing images of him leaving his home. he has been indicted on 12 counts including money laundering and tax fraud. blake burman joins us. blake? reporter: paul manafort will appear in a courtroom during the 1:00 hour later this afternoon. he walked into an fbi federal building at 8:15 and shortly there after a 31 page indictment. paul manafort and his associate rick gates, 12 counts attached
10:03 am
to their name. when you boil it all down, charles, government says manafort engaged in tax fraud and laundering to $18 million. when he was questioned by the department of justice he lied to investigators. they say he did not register as a foreign lobbiest like he did for work that he did overseas. when you read through the 31 pages here, charles, important to note, that the word trump was never mentioned. so at least from the white house perspective, they can somewhat breathe easier on this day at least, that the president has no mention in this 31 pages whatsoever. for the former campaign chairman it is very clear he has a whole lot of legal questions surrounding him as he will appear before a judge for the first time later this afternoon. charles? charles: real quick. so, exactly what is next for manafort in terms of procedures from here? what do you think is next with the mueller probe in general? reporter: he will be before that judge at one. this is the first step going
10:04 am
forward for the 12 charges. this will be laid out before him and the legal proceedings will take their case from there. as for the mueller investigation, charles, this is still on going. on this day specific to paul manafort and rick gates. business dealings it appears before they got into the trump campaign. before paul manafort was the chairperson of the trump campaign. there are other persons we have to been reporting on have to be somewhat cautious where this goes from here, charles. charles: appreciate it. joining us colonel ralph peters. colonel peters the mueller probe is very important as far as national security is concerned but explain us, walk us through why it is so important if you can? >> it is very important for multiple reasons, charles. one, no american can be above the law. you're seeing the american just tis system is working the way it is supposed to do. secondly, while there may be
10:05 am
possible indictments, not limited to trump campaign supporters there is core issue here of national security. i know people are politicizing this, going back and forth, what about hillary clinton? who paid for the dossier? the core issue is whether or not vladmir putin has undue influence or has had undue influence on presidential administration? let us hope with the mueller probe, mueller probe is done, they will find president trump has no involvement. but we've got to pursue it to the end. every american, right or left, with want to know that vladmir putin has no influence. now the worrisome thing to me as a long-term russian analyst, president trump will still not criticize vladmir putin by name. he has generally adopted a pro-russian tone i wish he would explain to us. let me jump to something else very quick. charles: can i push back a
10:06 am
little bit on that? >> sure, push back all you want. charles: i have seen have a strong relationship with xi in china. ab bee, i haven't give him given accolades to vladmir putin since he has been sworn in. >> actually he has. he said last week, our north korea problem would be easier to solve if we had a better relationship with russia. that is absolutely nonsense. he wouldn't criticize putin by name. he was against the sanctions until they were clear they had a veto-proof majority. i'm not trying to indict the president here. what trey gowdy said yesterday was exactly correct. let the mueller probe play out, hopefully we find out at the end of it will be much a do about nothing. eight months ago we were saying russia had no involvement in any of this. both houses of congress and government intelligence
10:07 am
community all accept, we accept that russia's involvement in the campaign, however you want to scale it was vast, intensive and well-thought out. charles: although i think conventional wisdom russia didn't sway the outcome of the campaign. >> yeah. charles: many people believe they attempted to have, play some sort of role. i think the politicization of it particularly from the media point of view somehow they ushered donald trump into the white house. but having said that, are you concerned about mueller's investigation? it has scene a very long time. comes up with a 31 page indictment that goes to 2006. manafort and his associate set up these companies and did something wrong, does this qualify as part of official russia investigation? is this what we were looking for? >> yes. it also goes through september of 2016, past convention, almost into the election but the fact that manafort was getting this money directly an indirectly
10:08 am
from the russian government. then becomes campaign manager for one of the two final presidential candidates in this election. of course that matters. of course it does. now -- charles: does it matter if the campaign didn't know about these things? or are you suggesting that the campaign may have had a whiff of this. >> that is what mueller is looking for. i'm telling everybody. reserve judgment. let justice take its course. i do trust the feds. i do trust mueller. something interesting everybody is missing with the manafort and -- charles: rick gates? >> rick gates indictments. who was not indicted today? mike flynn. which suggests to me, that mike may be talking. we shall see. charles: we shall see. >> let the investigation run its course and not be idiotally
10:09 am
partisan on either side. charles: thank you. they are starting to regain momentum. amazon hitting all-time high. joining us "barron's" senior editor, jack hough. tech names are rocketing. couple times, this is is it, rotation out of tech into banks. this is it, rotation out of tech into bonds, whatever it is. couple weeks later ignites again. they are igniting on earnings. >> people are having a hard time figuring it out. there is something is new going on. we have never before in history seen companies this big growing this fast. i mean there is genuine, top line, huge double-digit growth for these tech behemoths. they are the largest companies in america right now. they are among the fastest growing. simply hard to do the math, what do the companies look like five years from now. charles: the bottom line, does it matter with the companies? maybe older ones? even though amazon had earnings,
10:10 am
right, the earnings came in 1600% more, better than street expected. that is not what the focus was on. wall street was about the bottom line, not the top line. >> they are not all the same. facebook and alphabet are playing earnings game. they better produce earnings each quarter wall street is expecting and they are and significant top-line growth. if amazon is announcing earnings going away because they found some great new area to invest. amazon is running the business that way. it is actually a significant competitive advantage for amazon that they're able to run their business with much less profit than other retailers. charles: one name in all of these companies, even ibm, two weeks earlier, which had sure is prize earnings, cloud. we know it is like the wild, wild west and it is big and expansive and room for everyone to grow, but at some point it will be about taking market
10:11 am
share, won't it? >> there is battle for market share going on. amazon is the early leader in the cloud infrastructure. charles: microsoft jumped into the game, up 97% quarter before that, 93% two quarters before that. they can't keep growing at that rate, right? >> microsoft had stock rerating, higher price-to-earnings ratio with growth in the clouds. oracle is saying me too. everybody is trying to grow in the cloud. charles: jack hough we'll bring you back later talking about retail ice age. it has been a big hour here for you on "varney". paul manafort surrendering to the feds. he replaced corey lewandoski. cory will give his take. remember this, becky gerittson crying before congress giving her testimony?
10:12 am
she settled with many groups. like in nevada, danny tarkanian gaining steam in that state. he is doing very well in the polls. he joins us next. ♪ you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle your toughest questions right away- with volatility, it's all about your risk distribution. good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch. help from real traders. only with td ameritrade.
10:13 am
10:14 am
10:15 am
charles: all right. check out the big board. it has been in a holding pattern. for last 30 minutes or so, after opening down 100 points. general motors falling down after a downgrade to sell from goldman sachs. on friday, well we spoke to dennis prager, who is suing youtube and google claiming they blocked videos from his university, praying you are u. because of conservative content. youtube gave us this response. youtube is a open platform to,
10:16 am
make it a great place for users, advertisers we have different settings. restrictive mode is used by small subset of users that may include sensitive or mature content, giving viewers to opt in more restrictive experience is not censorship this is exactly the type of tool that congress has encouraged online services to provide for parents and others interested in a more family-friendly experience online. back to the politics, the fight between the gop establishment keeps going on. outgoing senator bob corker says, despite being at odds the republican party is committed to reform. roll tape. >> look, we've got a short window of time to deliver on tax reform, something that i want to see happen on behalf of the american people and, at least those of us in congress it is our job to write those bills and to pass those bills. that is where our focus needs to
10:17 am
stay. charles: want to bring in u.s. senate candidate danny tarkanian. danny, you're fighting the establishment. you're doing extraordinarily well. what are your thoughts for the overall fight for the hart and soul, if you will for the republican party? >> the people in nevada really appreciate donald trump and his america first policies do for our country. they want people in washington, d.c., that will support those policies. in the last election i was only federal candidate in southern nevada that had the courage to stand by and support donald trump. i fully support his america first policies. and my opponent on the other side was one of the first never-trumpers in the state of nevada. he obstructed the policies by voting against the repeal of obamacare. it isn't so much a fight against the establishment and insurgents. it is a fight against people that will support the policies and our president. charles: it is candidates like
10:18 am
you and others are being backed by bannon and who are going to be set up for major losses in the general election. in other words they went through this before it is a failed experiment and lost a lot of ground. what do you say to that criticism. >> mitch mcconnell doesn't know what he talking about, the particularly the state of nevada. joe heck was leading every single poll and demanded that donald trump stepped down from the nominee. that from point joe heck never led in the polls and lost. dean heller is a never trump per. he want win a general election. only seat to keep in the republican hands, to win the primary. i have a chance to beat jackie rosen the democratic nominee. charles: i hear you say that things are not changing but i know they are. pew poll, breaking republicans
10:19 am
down into four different sections of factions if you will. you can see it play out in health kay which failed. you see it playing out in the tax reform. where does the party find common ground? when do they decide to compromise? because i don't see anybody compromising within the party? >> that is the problem. look donald trump won the most stunning election in our country's history. nobody felt he could win. he ran on policies that was going to put america first, that was going to help the working class, middle-class americans that have been struggling through all those other presidents and congresses that passed one bill after another making it tougher for them to get through paying their bills and so forth. we need to support president trump's america first policy put america first. help middle-class americans that should be the gop platform. charles: danny, i will say congratulations thus far. you had a lead for a while, but it extended last week. it is very impressive. the whole country is watching. appreciate you coming on this morning. >> thank you, charles, for
10:20 am
having me on. charles: jack hough is still with us by the way. i want to talk about the death of brick-and-mortar, specifically areas jays -- jcpenney. it has been on death watch for a long time. looks like it will not escape. >> are you asking me if there is any hope? charles: is there any hope. >> there is no hope. let me be clear retailers don't die quickly. always own hugely valuable asset in the inventory, when they want they can pull levers to create cash flow to keep them afloat. i don't see any growth there. we have more stores than we need right now. some of them are more necessary than others. i'm not clear why the world needs jcpenney right now. liz: amazon could buy jcpenney, according to "forbes," using a million shares. put those, stores sit in middle to low income neighborhoods. that could be the way jcpenney gets out of it. >> the problem a lot of mall
10:21 am
space that is not attractive. the last thing amazon wants, anyone giving closer look for antitrust. it doesn't want to -- liz: distribution centers. charles: furniture, pharmacies. ashley: right. charles: hold on one second, guys, because we have breaking news. more breaking news from the special counsel investigation. former trump campaign advisor george -- that information unsealed with the manafort indictment. he will be sentenced at later date. john boehner speaking it using choice words for current and past members of congress as phony and terrorist. this is one republican talking about other republicans. more breaking news.
10:22 am
10:23 am
10:24 am
retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.
10:25 am
charles: back to politics, former house speaker john boehner sounding off to "politico" magazine sunday. he had tough criticism of his former gop colleagues. on gowdy, that is my guy even though he doesn't know how to dress. f-jordan, f-chaffetz. they're both a-holes. ashley: great. charles: representative jordan was a terrorist as legislator, going back to his days in the ohio house and senate. a terrorist. a legislative terrorist. let's bring in author of government gone wrong, kirsten tate. what are your thoughts. john boehner unloading? >> how dare john boehner attack
10:26 am
very people who are doing what he was supposed to be doing all those years in washington, d.c. john boehner is the definition after swamp monster. he caved to obama and democrats over and over again, letting down conservative voters. now he has the nerve to attack conservatives like jim jordan, who are doing what they were voted in to do, which is fight for conservatives? it is pathetic, how he was voted speaker of the house is beyond me, charles. charles: kristin, it is interesting. knows how delicate things are right now. he knows how hard the mainstream media is pushing back against president trump and everything he is trying to achieve. why would he chime in on this? seems so unbecoming, particularly for a man who held that position? >> you know, all of this speaks to trump's point we have to drain the swamp. why is he doing this? probably just to get attention. charles: right. >> your guess is as good as mine. a lot of these guys in congress
10:27 am
have been there far too long. some of these guys have been there 20, 30 years. career politicians are poisonous no matter what side of the political aisle you're on. john boehner was there since 1990. charles: stay right there. we will come back to you after a quick break. more "varney" after this. from tt when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
10:28 am
10:29 am
10:30 am
charles: president trump tweeting on pan manafort just moments ago. here is what he had to say. sorry, this is years ago, before paul manafort was part of the trump campaigns but why aren't "crooked hillary" and the dems the focus? we're going to get into that later. check the big board for you, the big board off only 23 points. nasdaq turned around, back near all-time highs. that is why all the big tech names up once again.
10:31 am
amazon up 18 points. apple up almost 3%. absolute juggernauts. then there is disney, preparing for another round of layoffs at espn. we know the situation there. look at office depot down big. jpmorgan cutting the stock to underweight. president trump tweeting his thoughts on russia late sunday night. quote, all of this russia talk right when the republicans are making their big push for historic tax cuts and reform? is this coincidental? not. "mediabuzz"'s howard kurtz. what are your thoughts? it all seems to happen at these periods of time? >> i am not going to suggest, the robert mueller the special counsel timed this indictment of paul manafort, at least a political problem for the white house although everything in that indictment as you know is about his business dealings before he was associated with the trump campaign, he timed it because tax reform debate is
10:32 am
heating up on capitol hill in the tweet you read moment ago, fine to point finger at hillary clinton and democrats connection to the dossier and so forth, but the big story of the day, by any stretch of the man nation is former campaign chairman for donald trump being indicted, whether, afforded presumption of innocence. but that is news. charles: that is news, obviously. there has been a lot of pressure on mueller, particularly since the iranian july one news surfaced. the narrative over the last two weeks shifts sharply, when we talked about russia, russia, trump, trump, then it shifted sharply to mainly russia clinton. coincidence, perhaps. we know mueller has an investigation to do, but it is interesting that this news breaks just as that was really building up momentum. >> right. obviously trump white house would like to talk about other things, including tax reform and other issues. i do think of the democratic involvement here, this "washington post" story last
10:33 am
week did change the narrative. the fact that hillary clinton's campaign and the dnc, although they say, gee, i didn't know. it was that lawyer who did it, hired, spent millions of dollars on opposition research firm that then paid for this unverified, unsubstantiated trump russia dossier. i do think that is important part of a political conversation. whether it ends up being something that mueller investigates i suppose will depend in part whether he is able to use manafort or others to get into this question of collusion. right now you have to say, although again not a great day politically for president trump, money landerring, tax evasion charges against paul manafort and associate rick gates have nothing to do with the russian investigation. charles: timeline, 2006. 31 page indictment, not a single mention of president trump. some guy setting up companies in cyprus in 2006, connecting that
10:34 am
to russian influence on campaign seems like a stretch. >> flipping around to channels, not sympathic to this president, initials with ms and others, mueller is trying to put pressure on manafort, trying him to flip on president trump. that assumes he has anything incriminating on president trump. something we don't know which is what mueller's legal strategy is. charles: howard, always good to see you. >> appreciate it. charles: paul manafort has been indicted on 12 counts by a federal grand jury. your initial thoughts on this news. >> my initial thoughts, if paul manafort did something in 2006 a decade before he was brought on as volunteer to the trump campaign, he should be accountable for that and he and his associate rick gates have
10:35 am
been indicted on 12 counts of money laundering and tax evasion and other things which have absolutely nothing to do with the campaign. have nothing to do with the russia investigation and have nothing to do with the president. let me ask you this, charles. if the public reports are true, and there was a time where paul manafort was under a fisa warrant before coming to the trump campaign, why is it fbi never reached out to me as campaign manager, never reached out to donald trump, look, you might want to pause for a second to look before you bring this guy on board as volunteer to hunt delegates to you. they never did that he was under fisa warrant both before and after at his tenure campaign. the fbi never notified a major candidate of republican party race and they never notified him? this is the problem with the fbi. charles: and their reluctance to cooperate in congress until recently, took everyone in congress including paul ryan to
10:36 am
start making big noise about this. why is that? why have we seen on the department of justice side, particularly the fbi but in general, so reluctant to protect the american people or provide more transparency? >> well, what we need to have, we need an open and active investigation into the uranium one deal. no one talked about it. what we do know unequivocally, that the chairman of the senate judiciary committee, chuck grassley of iowa said that robert mueller, because he was head of the fbi at the time should not be involved in the uranium one investigation. there should be a new and separate special counsel to investigate how this took place. we know the members of the sieve just committee, committee on foreign investment of the u.s., members on that committee, seven or nine of them were tied to the clinton administration. i'm sorry the clinton foundation. what we also know, what we know unequivocally, bill clinton receive $500,000 from somebody tied to russia. just before the uranium deal went through, bill clinton was
10:37 am
meeting with vladmir putin. these are just two many coincidence. what we're now seeings real collusion, potentially between the dnc, clinton campaign and russia. nobody wants to talk about it. charles: why hasn't jeff sessions taken action? where is the reluctance there? to your point, bill clinton speeches, they go from 100 grand to $500,000. we sell 20% of our uranium to russia of all people. $140 million finds its way into the clinton foundation, these are major, major smoking guns if you will. what jeff sessions, why is he waiting? >> well it's a great question. i don't know the answer to it. now that we have additional pressure from members of congress and the u.s. senate calling on the justice department to move forward, i hope the justice department will open a active investigation into the uranium one deal. it is something that the american people deserve an answer to. it is not by coincidence that
10:38 am
100 plus million dollars ends up in the clinton foundation. that bill clinton gets $500,000 for a speech, all of you had isen we lose 20% of our uranium. hillary clinton as the sequitur of state, has to sign off on the deal. this is not coincidental. i think the justice department should open an investigation to find out what took place. charles: cory, we had on howard kurtz. obviously the mueller investigation has gone on for long period of time. over last week there has been tremendous amount of pressure on mueller. even "wall street journal" editorial board, are putting pressure on him, that people are unhappy about this. is there beyond coincidence this indictment happens with this particular time, when be republicans have momentum on economy and trying to put together a tax bill that probably makes or breaks the party? >> i don't believe in coincidence. what we know we had information
10:39 am
leaked out on friday night to, news network about the indictments that were coming. i believe that is a felony, if you looked that information. that had to come from somewhere inside the mueller team most likely. they knew the grand jury finally served up charges. that information was leaked. that is very dishonest thing to do. my concern that people don't want to see the president being subs -- successful. this week we know the president will name new federal reserve chairman. he will put forth the tax plan, which will cut taxes for all americans across the board. there was significant amount of pressure by members of congress, now the major media outlets asking for mueller to be removed because this investigation has gone nowhere. all of sudden at last minute, last hour on friday night, charges are brought forward? look, if paul manafort and rick gates are guilty of tax evasion, money laundering, hiding accounts in cyprus, they should be held accountable. charles: absolutely.
10:40 am
>> they should be held accountable independent from the president. nobody had collusion with russia in the campaign that i'm aware of. charles: corey lewandoski, we appreciate it. >> thank you. charles: on to sports. majority of players on the houston, texans, taking a knee during sun night's game, during the national anthem, in response to controversial remarks made by the team's owner. kristin tate is back with us. you're in houston. you're from houston. what do you make of last night's kneeling display? >> look, the owner of the team, bob mack -- mack nair, made a poor choice of words. i don't think he meant them in racist way. you have to be concerned because it can be used against you. the players have the right to kneel as long as the n if. l allows them to. ultimately the nfl is a business and fans of football are fed up with this stuff. they see kneeling during the anthem being disrespectful. we're seeing that translate into
10:41 am
lower ratings for football games. tell you, charles, i'm not surprised about this. think about people who watch football, not latte sipping "new york times" readers on the east coast, same ones praising colin kaepernick. it is red-blooded hard-working americans who live in the south. these people love football. they want the moment to come together during the anthem, unite as americans and pay our respects to people who lost their lives and fought for our freedom. charles: those are the "friday night lights" crowd, right? they sell out stadiums for high school games. >> exactly. charles: where do you see it going? it felt like a week ago, it was, there were some attrition. we had only six players first week or second week. it feels like it could go it the own way. and that players realize it is counterproductive whatever their stated goals are? >> i think it will keep getting worse. to your point, seems like players and nfl itself is
10:42 am
doesn't understand its own fan base. i mean you have to question the nfl's values here. they're allowing this to go on. but then last year the dallas cowboys wanted to wear decals on their helmets to honor the police officers tragically died that summer, the nfl said no, you can't do that. to many people, seems like, that includes espn, are injecting politics into sports. charles: sounds like to me the commissioner, when he was talking at the meeting, that they didn't understand the players and the players didn't understand them. maybe everyone can get together to figure this out t hasn't been pretty or fun or anyone. kristin, thank you very much. appreciate it. >> thank you, charles. charles: coming up the next hour, ben stein, former nixon speechwriter, will give us his take on the manafort indictment. also, you remember becky gerritsen, she gave meggsal testimony in front of congress during the irs scandal?
10:43 am
the government has settled with the groups that were targeted. becky joins us next to react. ♪ prudential asked these couples: how much money do you think you'll need in retirement? then we found out how many years that money would last them. how long do you think we'll keep -- oooooohhh! you stopped! you're gonna leave me back here at year 9? how did this happen? it turned out, a lot of people fell short, of even the average length of retirement. we have to think about not when we expect to live to, but when we could live to. let's plan for income that lasts all our years in retirement. prudential. bring your challenges. hi, i'm the internet! you know what's dtj! get a job!ting... hi, guys. i'm back. time to slay! heals, heals, heals! yes! youuuu! no, i have a long time girlfriend. mom! i need my macaroni!!! you know what's easy? building your website with godaddy. pick a domain name. choose a design.
10:44 am
you can build a website in under an hour. yeah! whoo! yes! get your domain today and get a free trial of gocentral. build a better website in under an hour. ♪ ashley: perhaps to publish the tax plan on wednesday and last hour we spoke with congressman lee zeldin on the issue of state
10:45 am
and local taxes. roll tape. >> i'm waiting for confirmation on exactly what the change is going to be. so the original proposal was fully eliminate the state and local tax deduction. we're getting indication there are major changes getting made to it but exactly what is going to be placed on the table -- charles: would you be okay with a compromise? in other words higher economic threshold for them, so very, very rich people probably won't get them but the middle class, particularly middle class, states like new york and new jersey which are higher income levels and other parts of this country? >> first off my position that the state and local tax deduction should stay.
10:46 am
opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
10:47 am
charles: merck, the drugmaker falling after application for key keytruda in europe. dow is trying to get back in the green right now. story we're covering from the start to finish is irs story. the irs finally admitting to wrongly targeting tea party conservative groups. our next guest emotional testimony before congress, i'm sorry, after being targeted by the irs, becky gerritsen is with us now. becky, thanks for coming back to the show. >> thanks for having me, charles. >> you captured the hearts of
10:48 am
some americans with the testimony. you put a face on something that might have been a headline for others. you also put a face on the tea party, which at the time demonized so much by the mainstream media. is this apology too little, too late? >> well, i think a couple of things. first of all i want to athank you so much to the american center for law and justice as they represented us in this case. also to tom fitton and "judicial watch," they did great work uncovering emails with their foia requests. we would not have gotten this far without that. we did not have a criminal case. we had a civil case this is a huge victory for us. we're very happy with this outcome. the fact that the irs for years had been denying they did anything wrong. wanted to settle with us. they have admitted not only was it inappropriate but it was also unconstitutional. and, what has happened is there has been a complete revamping of the policy within the department
10:49 am
of the tax-exempt section. so, this is a really big message that is going to be sent to the government, that targeting is not allowed anymore and not tolerated. it's a huge win. charles: you really believe that. the irs used it as weapon by the federal government, pushing back on rising power of the tea party to stop your voice, the crux of american democracy, the ability for the average citizen to go out there and voice their opinion the way the tea party did, you don't believe that could ever be done again? >> well, i believe, it could always be done. i'm sure they will try. but part of the concept order we will be able to keep better eye on them. we need to stay vigilant. if you talk in terms of criminal aspect, i would have loved to see lois lerner in jail, and that was not part of our case. we did not have a criminal case.
10:50 am
and i think, justice, the law played out with the evidence that we had, this is, what we got and this is as good as it is going to get. charles: koskinen, also was able to ride out his tenure as well. the good news, that you're happy, that you feel, vindicated, and i think that is good for the viewers and the american public out there. what you guys went through was certainly painful, and it was shocking that, you know the up start tea party would have to be beaten down to the degree that it was. congratulations, becky. >> thank you. i will let you know, there were two settlements, there were two different cases settled last week. ours with the american center of law and justice and the norcal class-action suit, they won several million dollars of damages. charles: were you seeking money? were you seeking financial compensation? >> in our original lawsuit that started four 1/2 years ago, that was part of our lawsuit but that
10:51 am
part was dismissed. we did not get the appeal on that. so, no, we were not able to get that but all the other appeals went forward. they did settle with us. so this is good news. charles: congratulations. thank you. >> thank you. charles: we admire the way you stood up for yourself. >> thank you. charles: so weather, pests, disease, all things that keep farmers up at night. sometimes when everything goes according to plan. that could still pose its own problems. that is what is happening with corn. we'll explain next. ♪ his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client.
10:52 am
he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.
10:53 am
whentertaining us,es getting us back on track,hing? and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to
10:54 am
10:55 am
ashley: for farmers a catch 22. a booming corn crop means prices are plummeting. jeff flock in illinois. jeff, the life of a farmer is never easy, isn't it. reporter: it is not easy following behind a combine in the midst of the harvest here. it's a great year out on the farm, ashley. this is chris gould's farm in northern illinois. he will get 200 bushels an acre. the national average is 171 this
10:56 am
year which would be close to all-time record. the problem it is so good, prices really plummeted. we're down in the $3 change for corn. for every acre this guy harvests he makes about, i say, makes, he loses about $100 an acre. that is the way it goes for farmers. some years, you got good prices, you make good money. other years, you actually got to go to the bank. it's a great harvest, though, i will say that. nice and dry. good yield. what more do you want? profits. ashley: lower prices. jeff flock, be carol. stand a little further back, jeff, thank you very much. big story we're following all day. paul manafort, former trump campaign chairman indicted. coming up all-star line up to cover it all. steve forbes, sandra smith and
10:57 am
the one and only ben stein. hour three, three minutes away. your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at
10:58 am
our recent online sales success seems a little... strange?nk na. ever since we switched to fedex ground business has been great. they're affordable and fast... maybe "too affordable and fast." what if... "people" aren't buying these books online, but "they" are buying them to protect their secrets?!?! hi bill. if that is your real name. it's william actually. hmph! affordable, fast fedex ground. ..
10:59 am
11:00 am
charles: good morning, everyone peered third hour of mining company. i am charles payne in for stuart. headlines coming back, fast and furiously. paul manafort indicted tax fraud, money laundering. we are told he will make an appearance in front of a federal judge at 1:30 eastern time. the word trump doesn't appear anywhere in the 31 page indictment and it will be a big week for your bunny. details on the tax lien released wednesday. between now and then the gop debate over state and local tax deductions on possible changes even to your 401(k). a great lineup this hour as well. steve forbes, "forbes" media editor-in-chief here with us for the hour. 11:30 east aaron, we are going to ask about the manafort revelations as well. ♪
11:01 am
♪ charles: no word of days. paul manafort -- it is a brand-new week in a huge day of headlines. former trump campaign chairman paul manafort indicted. the president tweeting earlier saying this all happened years for manafort was part of the charm campaign. we are monitoring developments. we'll bring you the headlines as they come in. a quick check of the market first. nasdaq with another all-time high. earlier today the big board you can see struggling just a little bit. the big board for the tech names really about the same names. amazon, facebook, apple all hype today. we want to begin with the
11:02 am
manafort indictment. beginning is now, steve forbes, editor-in-chief. your reaction to this news. >> no surprise and i think trump was right, the president was right. nothing about that campaign. special prosecutors have to get a scout, one way or another even if it wasn't part of their original writ. there is always sensational rumors about manafort and so they are going -- charles: a raid on his home not long ago. i always felt manafort was in case of an emergency break glass for robert mueller. it felt like he was getting bogged down. a lot of calls for him. >> perhaps it's just a coincidence this sensational indictment comes on the period where the democrats turned out to have been involved in that dossier. charles: what does that make -- what you make of that? circling back to the democrat, and millions and millions of dollars spent on that commie dossier by the way, used filled
11:03 am
with phony information that was used by the fbi and other law enforcement officials. >> yeah, turns out the fbi was taken in by that and the russians are trying to stir up trouble on both sides everywhere in this country. the thing to keep in mind on this is what the democrats came after the conservative group used that firm for her. so don't confuse the two and i bet a lot of democrats now wish they hadn't brought up the whole russian thing. charles: although now they get a chance to change began. whether it's right or wrong window at the the headlines are going to say. >> it's not going to stop congressional investigations in terms of what the democrats did, not putting in the forums have to file about using vendors, trying to have deniability. that stuff will come crumbling down. trained to deal confidence anyone will ever pay a price? i know we sell hearing when
11:04 am
president obama was in office and members of his administration were aware of this stain on their sleeves and sort of bummed that most the congress and felt like they could do nothing or they didn't have the political will to actually get some justice for the american public. are you confident they will do that? >> congressmen gowdy is going to absolutely get in there and get a real investigation. these are former prosecutor. they will try to show that the branch of government is not the rubble and say the abundant ministration and previous administrations try to relegate it. charles: if you keep going if you bring up article v. the big economic news of coors' tax is paid the big tax bill we are all waiting for details wednesday joining us now from her heritage foundation president. they come up with a compromise, and just an unstated local tax reduction that still leaves some
11:05 am
other things have to help to pay for it. the 401(k) making people nervous. what do you think? >> i think salt, state and local taxes have got to be very much on the chopping block and i'll tell you why. they are really a redistribution from the high tax states, putting more of their burden on the low tax paid. the people who itemize are really higher earners, so let go back to what the president has been talking about in terms of making the system fairer, flatter, simpler, getting on one postcard and helping the middle income people. salt is not where we should be. charles: we had lee zeldin for new york on earlier. you said new york is a net ratepayer to washington d.c. not been subsidized. they are paid more than most other states are why should they be penalized in a further. >> they are paid more than most other states because there're more people who live there and they still have to suffer under
11:06 am
the incredible tax burden both of albany and particularly if they live in manhattan, in new york city. they do pay a lot of taxes, but that is because they've got inefficient and corrupt governments up there. charles: there is some compromise on salt. i don't inculcate the whole thing away. why do we find the rest of the money and are you worried we want them to agree with the 401(k)? >> gosh, no. the 401(k)s are absolutely essential to the long-term future. look on the social security going back to the time it was founded by fdr has always been only a part of what people like to count on when they retire. 401(k), four at three b., all the savings programs that are out there have got to be continued. it always comes up separately when you talk about budget versus taxes. we've got to get a handle on the
11:07 am
spending down here. that is where the rubber meets the road if you will announce where we have to get working. i'm very optimistic about where we are and what the group is fixed is going to come out, particularly ways and means in the senate finance committee on wednesday. train to there would've been more elbow room if he will if they'd they had gotten something done in health care. the alexander murray plan was scored by cbl in a suggested hey, this would lower the deficit and combined the nation two years. where do we stand on something like that, and maybe been interjected to buy time economically and also buy time for feasible replacement for obamacare. >> part of the problem is they really kind of blew it on the hill when they missed the first time around when mccain caved and did not go along with the first repeal and replace, but that is kind of ancient history. the question is now hardly patch it up and get where we are right now to where we want to be and where we want to be is to get
11:08 am
rid of some of these incredible structures that have been put in place in terms of subsidizing insurance companies, in terms of just buying time so we can get out of the hole we are ready to go back to letting people pick their own plans. charles: that would be novel. thank you so much. really appreciate your time this morning. >> thank you, charles, steve. trained to steve. charles: you say go big on tax cuts. president trump wants to go big. you want to go big. what is big media. >> one thing, call them tax cuts. not tax reform. get the messaging right. big tax cuts. what that means is reducing rates for everyone, reducing tax burden on everyone. consumption, investment. one of the things this debate the republicans have put themselves in, how do you pay for it? get off of this thing you have to take things away from people. they proposed earlier 20% national sales tax i'm mostly
11:09 am
working families. now they are fooling around with 401(k)s. just cut their rates. trade today are not doing that. they are finding away to quote, unquote pay for this field to find a trillion dollars and they've got to do some crazy gimmick to come up with that cash. trained today should drop the trillion dollars idea which is all the trouble and go for what makes the economy grow faster and vast. what raises people's income fast as for higher incomes? that should be the only criteria. if you have a booming economy that she take her the deficit. the balance budgets, and 1969 after the kennedy tax cuts. in the 1990s after winding down the cold war which reagan ron and balance budgets. trained to why is it so hard for republicans to say ronald reagan came in office, the government
11:10 am
took an amount of money. fast-forward to 1989, 28% we took in a lot more money. they may be a simple correlation that the american public would understand not. >> part of the problem is i'll be blunt about the republican leadership in the there are no supply-siders. no ronald reagan. >> the accolades, but they don't believe in ronald reagan. trained for reagan had a message across the board tax cuts are such a great message that al gore, john kerry, jill biden and pat leahy said yes, he's right. bill bradley and 10 kennedy all signed on to the reagan tax cuts. trained to we've got a go, but i need to understand why they won why they wanted to say hey we've got to use dynamic scoring which will take into account the circulation of money. charles: why do some people still believe in witches? this worship of the congressional budget office.
11:11 am
you are reading your daily horoscope in these rejections of the future from the congressional budget office. republicans are you. charles: we have a jampacked hour. more stuff like that. former speechwriter ben stein, what does he think about this manafort indictment? in tomorrow's halloween and that's right, and the pc police are striking again on college campuses. they are calling the culture is not a costume and telling students what's not appropriate to wear. steve forbes was just invited to speak at a college campus. we are going to keep them here and get his take on more of that. more "varney" next. ♪ six in the morning.
11:12 am
she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum back up and running, and we opened the next day. that's why feeling safe is priceless. with adt, you can feel safe with an adt starter kit professionally installed for only $49.00. call today, and install an adt starter kit that includes security panel, keypad, key fob,
11:13 am
entry and motion sensors and for a limited time, get a camera included and installed at no additional cost. that's a $449.00 value, installed, for just $49.00. adt has over 140 years of security experience, with our commitment to customer service, and round-the- clock professional monitoring, you have the comfort of knowing that adt is helping to protect what matters most. call today, or visit to get your adt starter kit installed for just $49.00. adt. we help keep you safe, so you can feel secure. call 1-888-337-safe or visit and get your adt starter kit for just $49.00.
11:14 am
11:15 am
charles: and now this. white house officials telling fox business president trump will announce his pick for fed chair on thursday. joining us now, sandra smith is just as surprised as i am we are talking about this. >> most unusual request i've ever received was to talk about the federal reserve on stuart varney. there needs to be a buzz around this program if you even mention the word fad. [laughter] exactly. what's your question. charles: the market is up so much and i think that's why people don't want anything. don't mess with it. you don't get janet yellen. >> and also as the president said, people anxiously awaiting my decision as to who the next head of the federal -- the fed
11:16 am
will be. our people anxiously awaiting this? i get that some are anxious to learn who this will be. the president has in the paschall announced that he can surprise us. so while powell might be believing, there's a lot of forecast. >> to your point, other people in the running. >> a lot of other people in the running. what's really interesting is the forecast it to what the impact would be on the market deciding who the pickle actually be. charles, should we can enter a deep argument we've had for quite some time about the sad and the fed's actions and implications for the stock market? look, this is an interesting historical time for the stock market. this is a big decision. might not be an exciting decision. >> when people look at their 401(k)s, they are excited that it's more interesting now because the fed is unwinding and
11:17 am
how fast they unwind and how they do that and how delicate they are about it is also the reason powell asserted propelled to the top is because he's for less regulation. >> i did a little research for you. i just got done hosting a two-hour show. i look at deutsche bank in what they're saying. powell is closer to yellen. he differs from her and wanting to lift prices impose regulations from financial institutions. this is a analyst to say. he would bring the highest degree of continuity. consensus builder they called him. charles: i know he's also the same page of president trump when it comes to regulations and janet yellen is not. remember president obama's terms. she showed where she was politically. i think that probably gives, and it's not one of those two reducing the market if it did feel like it's intimidating having steve forbes sterrett name. >> he's taking no spirit is going to grade you.
11:18 am
[inaudible] >> the things i would do at the federal reserve. charles: she was shouted down the next day. >> this is a fun room right now. ashley and lands. >> great platform. charles: speaker boehner blasting some former colleagues. did you see that? >> i read every bit of it. you did not tell me this is what we are going to be discussing, but i did read that. i thought it was very funny at times. i thought it was really interesting at times. ashley: amazing language. >> the comments about president obama and his wife, really interesting stuff. ashley: i'm supposed to read it. gowdy, that's my guy come even though he does not address. s. jordan, as jason jordan, jason chaffetz are both a holes. i can't believe i reading this. he goes on to say,
11:19 am
representative jordan was a terrorist going back to his days in the ohio house and senate. a terrorist, legislative terrorists. unplugged. charles: did you see the picture associated -- >> something else with those remarks. charles: the picture associated with the interview, working on his push lawnmower. >> he doesn't like to mow the lawn. >> first of all, it sounds like trey gowdy was his guy. thank you very, very much. outnumbered, noon eastern. wonderful to see you. thank you. see you guys later. in the meantime, and shares did come back a little bit. the dow trading with the higher the day day. just a few minutes, i err,
11:20 am
former speechwriter, best-selling author ben stein and that ben stein with his take in the white house and if this paul manafort indictment and is a concern for president trump. conservatives forgot how to dance. the person who wrote that headline and why it matters for conservatives in 2018. coming up. ♪ nah. not gonna happen. that's it. i'm calling kohler about their walk-in bath.
11:21 am
my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind.
11:22 am
11:23 am
or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to
11:24 am
charles: the latest headlines from spain. criminal charges for leaders of the movement in catalonia's independence. ashley has more details. charles: the state prosecutor in spain once these charges can rebellion, sedition, misuse of funds to hold the referendum in the first place october 1st. so what happened today? basically spain is now the administrator of taiwan. they fired the leader of the catalan movement. they fire the police chief and called for new elections in december. it is believe it or not gone fairly smoothly. we we understand a we understand the civil student still there have reported to work even
11:25 am
though the spanish government suggesting mr. putin the man who led this independent has gone to belgium. why belgium? or would weaken they said we would give asylum if he is going to face charges of treason and rebellion. that is not being confirmed. also pointing out a huge rally in barcelona yesterday for those people and cattlemen who don't want to split from spain. it's at least he is not more people wanting to stay with spam than not. it's a separatist driving cause. >> you think there was an honest-to-goodness referendum. charles: correct. only 30% voted in the referendum. they dread up 2% because they see it can be resolved without -- charles: there are troops industry. well, his name is ben stein.
11:26 am
actor, comedian, president nixon speechwriter. he is here on this program next. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. chevy, chevy, chevy trucks.e with a clear advantage. we think it's because chevrolets are the most dependable dependable dependable trucks. built to last a long long time. with durable durability and rugged ruggedness. i like the extra power hauling power maxi power!!! and quality. seems they make them strong extra strong mile after mile after mile. ♪chevrolet!
11:27 am
11:28 am
11:29 am
charles: the big board hasn't been able to get into the green. waffling down to 43 points right
11:30 am
now. however, let's check on the nasdaq which has hit an all-time high. you can see a complete juggernaut driven by the names that you know that won't stop. amazon, apple, facebook all hitting new highs today. politics, paul manafort facing federal accounts including money laundering and tax fraud. joining us now, ben stein, author of the capitalist code. we are going to get to your book in a moment but i've got to get your reaction on this manafort news. >> it is big news. i passed by the courthouse in washington d.c. 100 cameramen there with cameras taking pictures. we will not know the results of the till the trial from a good year, year and a half. i must say i'm scared of prosecutors. i'm scared of prosecutorial discretion and i just wonder what is going on. i suspect a 12 count something is going on. charles: 12 count, 31 page
11:31 am
indictment. not a single mention of president trump and timing and outcome of that must mean something, no? we make it means a great deal. they are trying to get them for things that have nothing to do with trump at all. what has happened here is collusion. collusion is a big word in america these days. collusion in the prosecutor's office in "the new york times" and the mainstream media which ones -- this is all done independent of trauma. this guy might be joe schmoe from nowhere as bill, nebraska. these accounts have nothing to do with trump. it is shame and really i think deeply subversive on the idea of justice. >> markets holding up pretty good? nasdaq and a record high. does that mean the markets believe this for a moment.
11:32 am
>> the stock prices and certainly nothing to do with interest rates, something to do with prices for the consumer, prices for the stockholder, investment returns. this country is in a state of extreme prosperity. the markets don't see any end to it although there always is an end to it. i think the markets are pleased with what they see in america right now should be. charles: you know, charges against manafort, there's no mention of work on the campaign, no mention of the president and no mention of the president's campaign is held. nowhere to be found. >> i know, it is kind of interesting when the special prosecutor or counselor, was being appointed, people said he's going to dig up a whole bunch of things in the media is going to pin it on trump and use the word trump every other
11:33 am
sentence. in fact, this has nothing to do with trump and it seems to me if you were to go back in anyone's life for five or 10 years you'd find something to investigate and inquire about him, unto him let's say for many, many hours than many days you would find at least one or two lines, one or two omissions. the prosecutor can indict anyone he wants. we have a saying among us lawyers. you've probably forgotten, charles i'm a lawyer and that is a grand jury can indict a ham sandwich. i think what is happening here is the prosecutor indicting ham sandwich and maybe a ham sandwich they did something wrong, but that has nothing to do with mr. trump. charles: ben, tell us about your book, the capitalist code. >> this book is very simple, charles. it's one book you need to read to make money in the stock market. the theory of the book is very simple. it is based. it's a great thing to own a
11:34 am
business. it's much better than being a working person working with your back or your mind having your income examined. it's much better than in the business. most of us are not entrepreneurs. most of us do not inherit businesses, so what we can do is buy stock and own tiny pieces of many, many businesses. for me as charles ball knows i've paid by the index. if you own it and contemptible piece of the largest 500 companies in america and as you add to that year in and year out is the equivalent, the exact economic equivalent and exact legal equivalent of owning a corporation herself except with this great, great wonderful difference you don't owe anything on debt because if you buy stock in the corporation in it goes into bankruptcy come you don't go into bankruptcy. your your investment and sauce but you don't want a bankruptcy. you don't get any additional charge for your dad. this is a painless come easy way to become a business owner in the capitalist system the best
11:35 am
thing you can be as a business owner and this makes it a painless easy way to do it. i learned all this from warren buffett. this is the main book you should be reading about investments or at lease one of the main book. >> it's a privilege to be able to invest in the market. >> is a great privilege. the capitalist system is the greatest it's ever been. any person who wants to can gain in on the gravy train by buying stock. it's unbelievably easy if you are buying the index is unbelievably cheap. get in on it while you can. charles: it all begins getting in on the book, the capitalist code. that's the way to get started. thank you very much. >> god bless you, god bless you. charles: president trump to pick its nominee for fed chairman thursday. john, how will this impact the market? >> they are anticipating a
11:36 am
continuation of yellen's policy, probably not much of an impact, which is important to the market we don't have a liftoff by interest rates. we get any rising interest rates have to be gradual. in fact, i don't think we have a strong enough economy to justify a 10 year treasury yield at two and three quarters. charles: the fed typically anticipate the economy getting to a certain level so they start to take action a little bit before that. some pretty good science going on, durable goods this morning. the good things going on. the next venture will be under some pressure to be an aggressive rate. charles: the market anticipates two or three more rate hikes in 22018. but i also think that the market still isn't totally convinced that the underlying fundamentals , middle-class america is really strong enough to shoulder a jump on the 30 year mortgage yield in excess of
11:37 am
half a percentage point or higher. charles: let me talk you about these tech stocks because they're absolutely unstoppable. of course that makes people hearken back to amazon up 130 points or something like that on friday. those kind of lives we haven't seen since that. are you nervous? >> they have greater earnings but also very high p.e. ratios. if you buy these stocks at this point in time, you are paid a lot for earnings and you're taking on a lot of risk in the event that the market reverses direction. charles: the market could have been in place a year ago, two years ago. particularly in amazon. are you concerned that the metric is a topline growth rather than bottom-line of which is historically what drove market. >> i do like the topline growth because that gives amazon the option of trying to get sales growth, more control over caused. of course that would naturally
11:38 am
expand margins. if i'm the business, what i want to do first of all is too well in terms of topline growth and later on perhaps i can worry about the rapid topline growth is because i am not careful with cost in all eventually pay the price. charles: how worried should people be? >> i would be especially worried at this point in time. i look over the near-term, over the next 12 months, i don't see any major risk your except for perhaps a mistake on the interest rate front with bond market becomes frightened of a run up by inflation that never materialized. good numbers today. real consumer spending. core pc price index year-over-year drops to 123%. >> thank you very much. i want to get back to taxes right now. released on wednesday, but already the national association of builders says they're not
11:39 am
going to support the plan. five massey, is this really that detrimental for the housing industry at the top organization is saying we are a no go, we are going to fight against this? >> special interest taken their position, charles. a regionally feel sort of motivated. new york, california with deductions they get in places like nevada but we don't -- aren't affected. i had the opportunity to interview people locally that come into town and asked locally that coming to town massive about these questions. the number one thing people concern themselves about his price at the home mortgage deductions. a lot of them don't realize some deductions we are talking about occurring as a result i don't think it will impact to the extent the special-interest think so. charles: that is nevada, right? new york, new jersey, illinois and a mistake for where democrats have run up massive debts with high taxes. we saw major pushback from
11:40 am
republicans on the budget. they sent the message of the tax writers that we are not on board and looks like they're winning but we've got a fine compromise somewhere. most americans believe the federal government shouldn't subsidize these things. >> i believe that's always been a battleground, charles. some of the things i listen to you talk about another's on the network is the fact the property tax deduction will stay in place. that may be the battleground to eliminate the other deductions. as a result of the long run regional. you look at those dates impacted, that is for the pushback is. there's got to be a compromise, but overall i don't see it impacting the optics of a looks like. charles: bob massie, always great seeing you. thank you very much. coming out, one of our washington d.c. insiders on this headline of his. quote, conservatives forgot how to dance. that's from chris stein wild.
11:41 am
he is talking about paul ryan and mitch mcconnell and he's going to explain why. 90 minutes from now, paul manafort will stand before a federal judge. let me remind you, the word trump not mentioned in the indictment. the question, you will hear this in the mainstream media. zar: one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.
11:42 am
11:43 am
>> good morning, everyone. laurie rockman live on the floor of the stock exchange. stocks are mixed at the dow with 70 points right now. i want to bring you over to apple were to take your daughter to work day apparently backfired. get this. burka milli peterson was visiting her data work as an engineer at apple and took video of the unreleased iphone accent put out a blog that's gone viral on youtube. apple in response reportedly fired her father. you can only imagine filming an unreleased iphone acts not coming out until november 3rd is a huge no-no. looking here at the new york stock exchange, at an all-time high. let's get you back now to "varney & company."
11:44 am
11:45 am
charles: moments ago, paul ryan was asked about the manafort indictment on a radio show in wisconsin and he said it wanted in the way of tax reform. joining us now, chris, this is huge and robert mueller finally getting an indictment. people do wonder about the true connection with respect to russia meddling and particularly president trump since there's no
11:46 am
mention of all country in any of it in the 31 page indictment. >> remember, mueller's charge is not specific to donald trump. mohler charges specific to parroting out ways in which russia and the kremlin try to influence the 2016 election. as we saw with news that tony podesta, top democratic lobbyist had also, according to a leak last week, that doesn't mean it's just about donald trump. if you do an investigation ways in which russia tries to influence american politics, paul manafort is the guy you want to talk to because he is among history of working with the identity and it does relate to raise russians have tried to influence. moscow has tried to influence at least back to the 1960s and paul manafort is part of that effort according to federal prosecutors and that is not to be about donald trump necessarily. >> the mainstream media has been
11:47 am
trump russia until uranium one starts to capture headlines the last few weeks. with respect to that, it seems odd because you go back to paul manafort 2006 setting up in cyprus in other places. was that the russia investigation or that should have perhaps been a separate issue with respect to paul manafort? >> it looks like hear what you have four separate investigations into manafort act to as a non-registered foreign agent and also the morse area stuff about money laundering. basically what you have here is that the special counsel office moves through, they sweep up other cases under way, consolidated into one investigation because again it falls under the rubric of ways in which the kremlin interferes with american politics than manafort eventually yes the chairman of what you want to be the successful president of
11:48 am
donald trump. the prosecutor looking to find out what russia does to interfere with american politics. charles: in the meantime, what we're looking at is conspiracy against the united states, fraud. there's nothing i saw that i know people are still combing through it and getting bits and pieces of sort of point to the russia connection specifically with our election from this indictment. >> you've got a guy operating at the highest level of american politics who according to this indictment is badly compromised by the kremlin. you have a guy who? agency because he is according to this indictment, he and his deputy are all mixed up and tangled up into all kinds of these kootenay schemes and oligarchs in these things that he's not his own man according to this indictment. and if that the case, you think so far the white house is taking
11:49 am
the right tack with this from a political point of view which is to say yup, we hear what they say in the special counsel's office is going to move ahead. this stuff happen before he got here. there is no claim what happened after he was here in goa pays. charles: a lot of americans hopefully they don't drop the with the levels in uranium one. i want to carve out a little time because your article fox, we want to talk about this. conservatives forgot how to dance. explain that one. >> the old saying about ginger rogers. ginger rogers had to do everything he did it backwards and high heels. conservative ideas about limited government are inherently unpopular. we have a bill of rights, where the constitution for the exact fact that populism and people call on governments to do more and more and more. you don't need a taxpayer
11:50 am
protection plan of raising taxes on the rich was unpopular. these are things conservatives have forgotten. they consider of what mike's a spending. charles: would you make that assumption if the american public sector into the white house, gave you control of congress, db state after state, state legislation, and wouldn't you make the same assumption? >> if you look at our poll, "wall street journal" poll, donald trump is doing well with republicans, while with conservatives, he's still why popular -- quite popular. the voters who delivered the upper midwest states, especially white men without college degrees. those voters care less about corporate tax cuts and may not like them. they are concerned about the federal entitlement and obamacare being cut off. those are things those voters want. they don't care about high taxes on companies. they do care and when you try to governor conservatives, you've got to remember those voters
11:51 am
want stuff. charles: steve forbes wants to chime in. >> race, where the republicans so lovely and messaging? they keep talking about tax reform. they keep talking about tax cuts, rates of pay, give you alter. better is that talking about cbo projections of a trillion dollars over 10 years. what's the matter with these people. charles: have you ever thought about running for president? >> you are 100000000000000000000% right. for republicans, they lost on health care because they argued the case on the democratic side of the ledger which measures by the number of people covered, not the quality and cost of the care. on taxes the reason they are in trouble is they are doing the same thing, talking about high taxes aren't wealthy people as the be-all and end-all of the values and changes of tax rather than gross, gross, gross.
11:52 am
>> the crazy thing and 401(k). what's going through their mind? >> the problem unfortunate lot of republicans may be buying into the idea that chuck and nancy are going to play ball in my shoots himself in the foot in different ways as well. we've got to let you go buddy, thank you very much. listen, the tax plan falls this week it also critical jobs report on friday. steve forbes is still with us. by the way, you're invited by college republicans at northwest university in there some protesters. we are going to come back and talk about that. more "varney" after this. my experience with usaa has been excellent. they always refer to me as master sergeant. they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before
11:53 am
we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people that actually have a genuine need. we're the webber family and we are usaa members for life. usaa, get your insurance quote today.
11:54 am
retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.
11:55 am
11:56 am
charles: steve steve forbes, yoa "forbes," you were speaking at northwest next week. ready for the protests because they are ready for you? >> i'm going to break out my bagpipes. that is a threat. charles: when you make of this whole situation? it goes from hollowing costumes to conservatives having a voice. >> a very strong minority which want to shut the opposition down. even though a majority i come a lot of kids on the college
11:57 am
campuses don't like it and realize they are libertarians. i was at cornell a few days ago. a good group of kids out there. we hear about the rowdies, those who want to shut everything down. outsiders come in doing violence. they've got to go out there and do the missionaries. transfer what are you talking about? >> the economy, taxes. charles: you are fantastic. thank you. are you going to talk in a little bit? >> though fall asleep or that's what i'll do. talk about the fed. charles: more "varney" after this. ♪
11:58 am
. . . .
11:59 am
charles: the market held up all day except about 10 seconds ago. reuters headline saying corporate tax cuts may be implemented gradually guys. liz: look at this, market skilling back a little bit. ashley: why would you do that?
12:00 pm
>> republicans are turning into cowardly lions. charles: what is this about? they adopted all democrat talking points. >> good argument for term limits. these people are in washington too long. charles: neil cavuto, thank you very much. neil: now all of this could make idiots out of us come wednesday when details, brackets what is in, what is out, what is allowed to be a writeoff, what is not allowed to be a write-and-a-half is presented to american public. until then we're going by rumors. rumors they're scaling in gradually corporate taxes. "wall street journal" reporting that upper income, not looking a tax cut but rate increase. a high of 42% on top of cherished deduction. that is crowd is flummoxed how


info Stream Only

Uploaded by TV Archive on